Bush Gives Go-Ahead to Japan Fighter Deal

President Bush today decided to go ahead with the controversial FSX fighter deal with Japan after reaching agreement with Tokyo on several key conditions.

The project is controversial because, critics say, it would result in the United State giving its technology to Japan that would hurt America’s competitive advantage in aviation.

Bush has deliberated for many weeks on the pros and cons of the deal, which would involve production of the fighter plan known as FSX by General Dynamics and Japan’s Mitsubishi Heavy Industries.

The plane is a modified version of the U.S.-built F-16.

The President had said he wanted to go ahead with the joint venture as long as the agreement would safeguard U.S. technology.

Congressional sources, who spoke on condition they not be identified, said the Japanese government had agreed to ensure that 40% of the estimated $5-billion production run on the plane will be handled in the United States.

The Japanese had already agreed to give U.S. companies a 40% share of the FSX’s estimated $1.2 billion development work.

On another key point, the congressional sources said, the Japanese agreed to U.S. requests for protection of sensitive source codes used for computers aboard the plane.

The Reagan Administration negotiated the arrangement initially after Japan refused to buy any U.S. F-16 fighters and indicated it would build its own fighter plane.